@PROFDOCDIGITALLIBRARIES
CFCI STUDY GUIDE 2025 | COMPLETE
QUESTIONS AND CORRECT ANSWERS | GRADED
A+ | VERIFIED ANSWERS | LATEST VERSION
Save
Terms in this set (179)
PR
"Any illegal acts characterized by deceit,
concealment, or violation of trust. These acts are not
dependent upon the perpetrated by individuals and
O
Fraud
organizations to obtain money, property, or services;
to avoid payment or loss of services; or to secure
FD
personal or business ad-vantage."
Main types of fraud Internal Fraud and External Fraud
Activities that may be criminal, committed within an
O
Internal Fraud organization, typically by the employee against the
employer.
C
Deceptive conduct by non-employees that
External Fraud deprives the organization of value, and/or is
undertaken for financial gain.
The theft of money, property, or other assets of the
Embezzlement
employer.
The taking away of the property of another, with the
Larceny
intent to convert it to his/her own use.
,@PROFDOCDIGITALLIBRARIES
"Cooking the books." This type of fraud generally
refers to falsely representing the financial condition of
the company, so as to inflate the value of stock,
Financial Fraud
fraudulently boost executive bonuses, or otherwise
mislead shareholders, lenders, employees, investment
analysts, or other users of the information.
Accounts receivable fraud, this involves simply
Skimming (cash larceny) stealing cash before it enters the organization's
accounting system.
Using false documentation to cause a targeted
Billing Schemes organization to issue a payment for false services
and/or purchases.
PR
Common method (Taking advantage of employee
access to blank company checks, using a password to
Check Tampering
steal computer-generated checks or producing
O
counterfeit checks).
Making false claims for reimbursement or inflating or
Employee reimbursement
FD
creating fictitious business expenses. (Travel /meal
scheme
reimbursement.
Corruption Bribery, illegal gratuities, and/or extortion.
O
When something of value is offered or given to
Bribery
influence a business decision.
C
When something of value is given to an employee to
Illegal Gratuities
reward a business decision.
When a person demands payment or seeks to
Extortion influence a business decision by threat of harm
through loss of business or personal injury.
Forms of corruption involving employees and
vendors, often using inflated billing or invoices for
Kickback Schemes
which the employee is paid a portion of the inflated
or fictitious invoice.
, @PROFDOCDIGITALLIBRARIES
The creation, sale, or use of a counterfeit credit card,
Credit Card Fraud
or the use of a stolen credit or debit card.
C.N.P Card not present transactions
The fraudulent acquisition or stealing of confidential
Identity Theft
personal information through social engineering.
Involves the unauthorized use of another person's
personal data for illegal financial benefit. Involves
Identity Fraud
abusing the stolen information to transact personal
business in the victim's name.
An extreme form of what was called free banking. "A
bank that issued notes without adequate security in
PR
Wildcat Banking
the period before the establishment of the national
banking system in 1864".
Theft (stealing money, ID, or assets) and deception
2 categories that
O
(cooking the books, lying to shareholders, employees
encompass Fraud
or partners)
FD
The failure of about 1000 savings and loan banks as a
result of risky business practices. The roots of the S&L
Savings and Loan Crisis crisis lay in excessive lending, speculation, and risk-
taking driven by the moral hazard created by
O
deregulation and taxpayer bailout guarantees.
Myth #1 of the Financial "We have very little fraud here" ex: subprime
C
Services mortgage fraud
Myth #2 of Financial "Ethics and training compliance has us covered" Fraud
Services is not always covered in ethics policy or training.
"Fraud is an unavoidable cost of doing business"
Myth #3 of Financial Fraud is usually not serious enough to destroy a
Services financial service firm, it is much more than necessary
cost of doing business.
CFCI STUDY GUIDE 2025 | COMPLETE
QUESTIONS AND CORRECT ANSWERS | GRADED
A+ | VERIFIED ANSWERS | LATEST VERSION
Save
Terms in this set (179)
PR
"Any illegal acts characterized by deceit,
concealment, or violation of trust. These acts are not
dependent upon the perpetrated by individuals and
O
Fraud
organizations to obtain money, property, or services;
to avoid payment or loss of services; or to secure
FD
personal or business ad-vantage."
Main types of fraud Internal Fraud and External Fraud
Activities that may be criminal, committed within an
O
Internal Fraud organization, typically by the employee against the
employer.
C
Deceptive conduct by non-employees that
External Fraud deprives the organization of value, and/or is
undertaken for financial gain.
The theft of money, property, or other assets of the
Embezzlement
employer.
The taking away of the property of another, with the
Larceny
intent to convert it to his/her own use.
,@PROFDOCDIGITALLIBRARIES
"Cooking the books." This type of fraud generally
refers to falsely representing the financial condition of
the company, so as to inflate the value of stock,
Financial Fraud
fraudulently boost executive bonuses, or otherwise
mislead shareholders, lenders, employees, investment
analysts, or other users of the information.
Accounts receivable fraud, this involves simply
Skimming (cash larceny) stealing cash before it enters the organization's
accounting system.
Using false documentation to cause a targeted
Billing Schemes organization to issue a payment for false services
and/or purchases.
PR
Common method (Taking advantage of employee
access to blank company checks, using a password to
Check Tampering
steal computer-generated checks or producing
O
counterfeit checks).
Making false claims for reimbursement or inflating or
Employee reimbursement
FD
creating fictitious business expenses. (Travel /meal
scheme
reimbursement.
Corruption Bribery, illegal gratuities, and/or extortion.
O
When something of value is offered or given to
Bribery
influence a business decision.
C
When something of value is given to an employee to
Illegal Gratuities
reward a business decision.
When a person demands payment or seeks to
Extortion influence a business decision by threat of harm
through loss of business or personal injury.
Forms of corruption involving employees and
vendors, often using inflated billing or invoices for
Kickback Schemes
which the employee is paid a portion of the inflated
or fictitious invoice.
, @PROFDOCDIGITALLIBRARIES
The creation, sale, or use of a counterfeit credit card,
Credit Card Fraud
or the use of a stolen credit or debit card.
C.N.P Card not present transactions
The fraudulent acquisition or stealing of confidential
Identity Theft
personal information through social engineering.
Involves the unauthorized use of another person's
personal data for illegal financial benefit. Involves
Identity Fraud
abusing the stolen information to transact personal
business in the victim's name.
An extreme form of what was called free banking. "A
bank that issued notes without adequate security in
PR
Wildcat Banking
the period before the establishment of the national
banking system in 1864".
Theft (stealing money, ID, or assets) and deception
2 categories that
O
(cooking the books, lying to shareholders, employees
encompass Fraud
or partners)
FD
The failure of about 1000 savings and loan banks as a
result of risky business practices. The roots of the S&L
Savings and Loan Crisis crisis lay in excessive lending, speculation, and risk-
taking driven by the moral hazard created by
O
deregulation and taxpayer bailout guarantees.
Myth #1 of the Financial "We have very little fraud here" ex: subprime
C
Services mortgage fraud
Myth #2 of Financial "Ethics and training compliance has us covered" Fraud
Services is not always covered in ethics policy or training.
"Fraud is an unavoidable cost of doing business"
Myth #3 of Financial Fraud is usually not serious enough to destroy a
Services financial service firm, it is much more than necessary
cost of doing business.
